Ripple Safeguards Strategic Growth in the United States by Acquiring Standard Custody & Trust Company
Ripple, the leading provider of enterprise blockchain and crypto solutions, has made a strategic move to strengthen its presence in the United States. The company announced its acquisition of Standard Custody & Trust Company, a New York-based firm, in a bid to expand its range of secure and compliant crypto solutions in the US market. This move comes at a crucial time as Ripple continues its legal battle with the US Securities and Exchange Commission (SEC).
Ripple’s decision to acquire Standard Custody & Trust Co. highlights its commitment to growth in the US, despite its focus on international markets. By acquiring a company that holds a New York limited purpose trust charter, Ripple will be able to offer more comprehensive in-house services, particularly for financial institutions interested in asset tokenization. This expansion allows Ripple to go beyond its established payments network and explore additional financial products using blockchain technology to cater to its institutional clients.
The details of the acquisition remain undisclosed and are pending approval from the New York Department of Financial Services. However, once finalized, Ripple will become the sole shareholder of Standard Custody & Trust. This acquisition will introduce a crypto custody and settlement service to Ripple’s suite of offerings, allowing its clients to retain custody of their assets directly with Ripple instead of relying on external partners.
Ripple President Monica Long emphasized the importance of the acquisition, stating that the trust licenses held by Standard Custody & Trust are critical to delivering a full end-to-end solution for financial institutions. By combining technology with compliance, Ripple aims to provide a comprehensive blockchain solution for decentralized financial services.
Despite its ongoing legal battle with the SEC, Ripple remains focused on its business expansion. The company is confident in securing a favorable outcome and continues to prioritize its strategic goals. The recent request from the SEC for Ripple Labs to disclose specific financial records and details regarding its institutional sales of XRP tokens has not deterred Ripple from its growth trajectory.
The legal battle with the SEC revolves around allegations of unregistered securities sales in the US. While a New York judge ruled last July that only Ripple’s institutional sales of XRP violated US laws, the case continues to unfold. Ripple remains optimistic and believes that this legal battle will contribute to defining regulatory approaches to digital currencies.
In summary, Ripple’s acquisition of Standard Custody & Trust Company represents a significant milestone in its growth strategy. Despite its ongoing clash with the SEC, Ripple is determined to expand its presence in the US market and provide secure and compliant crypto solutions to its institutional clients.